IB Econ Macro IA (7점)

Egypt’s inflation rate hits 7-month high on the back of price hikes

Urban consumer prices rose due to increases in fuel, electricity, tobacco and food costs

Egypt’s annual inflation rate reached a seven-month high, the state-run statistics agency Capmas said on Tuesday. Prices increased to 5.4 per cent in July, the highest since December 2020, the government agency said.

Capmas attributed the increase from 4.9 per cent in June to a rise in food costs amid higher consumption during the summer months, as well as recent rises in the prices of fuel, electricity and tobacco.

Food and beverages costs – the largest single component of the inflation basket – climbed an annual 4.9 per cent. Transport was up 6.6 per cent, and alcohol and tobacco rose by 2.9 per cent.